Key Terms From This Episode
APR (Annual Percentage Rate):
The annualized rate of return on an investment, expressed as a percentage. In Liquid Loans, APR is displayed for both the Stability Pool and LOAN Staking Pool, though these rates can vary significantly based on protocol activity.
LOAN Staking Pool:
The smart contract where users stake LOAN tokens to earn their share of the protocol's borrowing and redemption fees, paid out in USDL and ETH.
Pool Share:
Your percentage ownership of a staking pool or liquidity pool. In the LOAN Staking Pool, your pool share determines what portion of protocol fees you earn.
Staking:
The process of locking tokens in a smart contract to earn rewards. In Liquid Loans, you can stake LOAN tokens to earn protocol revenue, or deposit USDL in the Stability Pool to earn liquidation gains and LOAN rewards.
The LL Librarian
Your Genius Liquid Loans Knowledge Assistant